Market Insights Advertising & Media Advertising

Influencer Advertising - Peru

Peru

Ad spending in the Influencer Advertising market in Peru is forecasted to reach US$25.55m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 8.51%, leading to a projected market volume of US$38.43m by 2029.
The average ad spending per internet user in the Influencer Advertising market in Peru is estimated to be US$0.89 in 2024.
When compared globally, China is expected to generate the highest ad spending, reaching US$19,160.00m in 2024.
In Peru, Influencer Advertising is rapidly gaining traction as a key strategy for brands to reach their target audiences effectively.

Key regions: France, China, United Kingdom, United States, India

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Analyst Opinion

Influencer advertising has become a prominent marketing strategy in Peru, with brands increasingly turning to influencers to promote their products and services. This trend can be attributed to several factors, including changing customer preferences, the rise of social media platforms, and the unique characteristics of the Peruvian market. Customer preferences in Peru have shifted towards more personalized and authentic forms of advertising. Traditional forms of advertising, such as TV commercials and print ads, are often seen as impersonal and less trustworthy. In contrast, influencer advertising allows brands to connect with consumers on a more personal level, as influencers are seen as relatable and trustworthy figures. This has led to a growing demand for influencer collaborations among Peruvian consumers. The rise of social media platforms, such as Instagram and YouTube, has also played a significant role in the development of the influencer advertising market in Peru. These platforms provide a space for influencers to showcase their content and engage with their audience. With a large number of Peruvians actively using social media, brands have recognized the potential reach and impact of influencer advertising in this digital landscape. In terms of trends in the market, there has been a notable increase in the number of micro-influencers in Peru. Micro-influencers are individuals with a smaller but highly engaged following on social media. Brands are increasingly partnering with micro-influencers as they offer a more targeted and niche audience. This trend is driven by the desire to reach specific consumer segments and maximize the effectiveness of influencer campaigns. Another trend in the market is the diversification of influencer content. While fashion and beauty influencers have traditionally dominated the market, there is now a growing demand for influencers in other sectors, such as food, travel, and fitness. This reflects the evolving interests and preferences of Peruvian consumers, who are seeking a wider range of content and recommendations from influencers. In addition to customer preferences and market trends, there are also local special circumstances that contribute to the development of the influencer advertising market in Peru. One such circumstance is the high level of mobile phone penetration in the country. Peru has a large population of smartphone users, which provides a fertile ground for influencer marketing campaigns that are primarily consumed on mobile devices. Underlying macroeconomic factors also play a role in the growth of the influencer advertising market in Peru. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has created a favorable environment for brands to invest in influencer advertising as a means to capture the attention and purchasing power of Peruvian consumers. Overall, the influencer advertising market in Peru is developing rapidly due to changing customer preferences, the rise of social media platforms, local special circumstances, and underlying macroeconomic factors. As brands continue to recognize the value of influencer collaborations, it is expected that this market will continue to thrive in the coming years.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.